Wage Theft in the Adult Entertainment Industry

In 2023 and 2024, Denver Labor proactively opened wage investigations into the strip clubs Diamond Cabaret and Rick's Cabaret.

In a separate investigation in 2024, Denver Labor received credible information alleging Diamond Cabaret had stolen a worker’s wages and had taken adverse action against her for exercising her rights. Denver Labor opened an investigation and sent a Notice of Investigation regarding these issues to the strip club. After additional correspondences, Denver Labor issued a Liability and Penalty Determination. As of Feb. 2025, the outcome of this determination is pending.

Yes, entertainers are workers who are entitled to the fundamental protections of the Denver’s wage ordinances. 

Denver’s ordinances do not only apply to protect “employees.” The broader category of “workers” includes employees, but also covers at least some individuals who might arguably be independent contractors under state or federal law.

A “worker” is defined as a natural person performing work, and includes, but is not limited to full time employees, part-time employees, temporary workers, agents, and any other persons performing work on behalf of or for the benefit of an employer or other person.

Businesses cannot require workers to pay for the privilege of working. Nor can they force workers into mandatory, non-revocable fines and fees, especially when those fees reduce hourly wages below minimum wage. 

If the business exercises a significant amount of control over entertainers’ working conditions, sets prices and guidelines regarding entertainers’ performances and behavior, and tells entertainers when, where, and how to perform onstage, then entertainers are not autonomous and should not be classified as independent contractors.

If you work within the boundaries of the City and County of Denver, you should earn at least the local minimum wage. In 2025, the local minimum wage is $18.81/hour. As an entertainer in the adult industry, you are a worker and, therefore, are protected by the Citywide Minimum Wage Ordinance.

In appropriate circumstances, employers pay a sub-minimum wage up to $3.02 per hour to qualified food and beverage workers.

To be eligible for the sub-minimum wage, a person must work in the food and beverage industry and perform significant customer-service functions in contact with patrons.

Employers cannot pay the sub-minimum wage to workers who do not perform tipped food and beverage work.

Tips belong to workers the moment they are given, and no supervisor, manager, or owner of a business may assert a claim to, or right of ownership in, or control over tips.

Managers and supervisors may receive tips only in a very limited circumstance: when a customer tips managers and supervisors directly based on services they directly and solely provide.

If supervisors or managers receive a portion of the tips paid by customers for labor or services performed by workers, the business commits two forms of wage theft, and must both return to employees any tips unlawfully kept, and pay the full, untipped minimum wage. 

When employers require to share tips with workers who do not regularly receive tips from patrons, they are no longer allowed to pay the sub-minimum wage.

If you work in the City and County of Denver and think you are a victim of wage theft, contact us:

• File a complaint online.
• Call us at 720-519-WAGE (9342).
• E-mail us at wagecomplaints@denvergov.org.
  

Denver Labor strongly urges all workers in the adult entertainment industry who have concerns about wage theft to contact us. We understand the potential risks of retaliation that an employee might face, which is why we encourage workers to submit an anonymous complaint to us without hesitation.

Denver Labor protects all workers in Denver and will not ask about the worker’s country of origin or immigration status during an investigation. Furthermore, Denver Labor will impose penalties for any unfair immigration-related actions or threats to workers.

If you feel you have been the victim of other violations of your rights that Denver Labor does not enforce, you may still contact us. We will work to connect you with other government and community resources.